Atlantic Health Leadership Development Series

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Transcript Atlantic Health Leadership Development Series

Health Reform and New Jersey

Sally Roslow 609-275-4224 [email protected]

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Agenda

Political Outlook

National Healthcare Reform

State Update Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

GOP Challenges

• • •

Unlikely to have two-thirds vote necessary to override presidential vetoes

Law responds to genuine needs Law saves government money…repealing provisions could be “spenders” Many provisions “connected”

National Healthcare Reform

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Key Items in Reform

32 million covered (expansion begins 2014)

923,000 New Jerseyans

 

300,000 Medicaid 600,000 Exchange

Insurance mandate (2014)

Large employers pay $2000/employee fee

Insurance market reforms

  

No lifetime caps Children up to age 26 Can’t deny coverage for pre-existing conditions Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Key Items in Reform

cont’d

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Medicaid expansion – 133% of FPL Tax on Cadillac Plans (2018) Closes Medicare prescription drug “donut hole”

Geographic variation

$400 million carrot for low cost / high quality states

IOM study Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Key Items in Reform

cont’d

Readmissions – imposes penalties for “excess” readmissions (heart attack, heart failure & pneumonia)

$7.1 billion over 10 years (2013) Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Healthcare Reform 2010-2019

  

Cost Coverage How – $1 trillion/10 years – 32 million – Individual and employer mandates – Medicaid expansion – Insurance exchanges

NJ Specifics – 923,000 of 1.3 million uninsured covered – Hospitals will contribute $4.5 billion/ 10 years Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Strategic Directions

Movement away from fee-for-service toward integration

Emphasis on value versus volume

Emphasis on quality versus quantity Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

“The Secretary shall…”

“The Secretary Shall” Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Rethinking the Organization of Care Where is your place? What is realistic? What is achievable?

Accountable Care Organizations Post Acute Care (PAC) Episode Bundling Primary Care Physicians Specialty Care Physicians Outpatient Hospital Care and ASCs Acute Care Episode with PAC Bundling Inpatient Hospital Acute Care Acute Care Bundling Long Term Acute Hospital Care Inpatient Rehab Hospital Care Skilled Nursing Facility Care Home Health Care Medical Home

Source: The American Hospital Association (AHA)

Strategic Issues for Hospital / Healthcare Leaders

Reinvent ourselves as we continue to provide quality care, largely under old system (volume and procedures) even as we shift to P4P

Anticipate impact of reduced payments from Medicare

Get ready to jump to new way of doing business

 

But don’t jump too soon or too late Many advise acute care hospitals to plan to reduce costs to maintain profitability at Medicare rates Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Strategic Areas to Focus Upon

Enhance efforts to improve quality and patient safety (Focus on outcomes, care coordination, evidence based medicine & comparative effectiveness)

Reduce variation in care in your organization (then region, then state… county)

Increase clinical and operational efficiencies

Reduce avoidable readmissions Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Strategic Areas to Focus Upon

cont’d

Conduct community needs assessment (req’d for tax-exempt hospitals)

Assess/strengthen plan for HIT and EHR. Move to doctor/patient/hospital connectivity

Examine readiness for episodic payment, care redesign and ability to manage care across continuum

Foster better alignment with physicians Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Making Delivery System Reform a Success

Three Keys to Delivery System Reform

Quality Health IT Clinical Integration

NJHA Healthcare Reform Resource Center

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http://www.njha.com/Reform Implementation schedule Grant opportunities Regulations News and updates Resources and links Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

FY12 State Budget

The state is projecting a $10.5 billion budget shortfall on an approximately $30 billion budget

Cuts and reductions in governmental spending are highly anticipated

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DHSS looking at consolidating funding CMS approval of current budget plan still pending

Increased assessment moving forward Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Healthcare Reform : State Implementation

NJ Protect

High Risk Pool - Initiated August 2010

Administered by Horizon Blue Cross Blue Shield

Coverage to approximately 21,000 individuals

Insurance Exchange

Must be operational by Jan. 1, 2014

NJ DOBI recently awarded $1 million grant to review exchange creation

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Healthcare Reform : State Implementation

Insurance Reform

August 16, 2010, NJ receives $1 million grant to conduct premium reviews of health insurance companies

Medicaid Expansion

Beginning Jan. 1, 2014, Medicaid coverage will be expanded to 133% of the federal poverty level for non elderly individuals

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association

Source: New Jersey Hospital Association Copyright 2010, New Jersey Hospital Association Questions?